Series 7 practice questionmediumAccount Types — Joint Account Orders
In a JTWROS account with two owners, which of the following is TRUE regarding placing orders?
- ABoth owners must approve every trade
- BEither owner may individually place orders in the account✓ Correct answer
- COnly the owner who funded the account may place orders
- DA third-party trustee must approve all trades
Explanation
Why B — Either owner may individually place orders in the account
In a joint account (JTWROS or TIC), either party may independently place orders and conduct transactions. However, checks or distributions must typically be made payable to all account owners. Both owners are jointly and severally liable for any obligations arising from the account.
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